Gampaha District Of Sri Lanka Economics Essay


This proposal discusses the factors that hinder the little scale entrepreneurial development in Gampaha District. Small scale concerns are cardinal for any economic system and it encompasses little retail store to industrial production units under the little graduated table concern standards. The survey is chiefly based on the primary informations gathered on indiscriminately selected little graduated table enterprisers in the really territory. The information will be gathered utilizing structured questionnaires, questioning the little graduated table enterprisers and assorted SME supported organisations. Secondary information will besides be supplemented to this peculiar research.

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Most of little concerns are built-in with weak public presentation in overall facet of the concern maps plus most of SMEs do non hold proper program for their hereafter. Hence this research expression into the grassroots level factors that affect to the development of the little graduated table entrepreneurship in Gampaa territory.


1.1 Background

Small concern plays a critical function in everyone ‘s life because much of our twenty-four hours today economic activities based on the little concerns. Small graduated table enterprisers have been identified as an of import strategic sector for advancing growing & A ; societal development of Sri Lanka. Over the old ages, little concerns have gained broad acknowledgment as a major beginning of employment, income coevals, poorness relief & A ; regional development. The little concern endeavors cover wide countries such as fabrication, service, trading, professional services & As ; others.

The function played by the little and average degree in developed states such as Japan, Germany, USA, UK, and South Korea is significant. The development of the Nipponese economic system in the nineteenth century was based on these little and average degree concerns. India excessively, has identified little graduated table enterprisers as an country that should be more stressed in an economic system.

In India there are 1.7 million units of SMEs working all over the state and they comprise half of the entire industrial constitutions.

In Sri Lanka besides, all the authoritiess have identified the verve of developing the little degree entrepreneurship. After 1991, consecutive authoritiess strived to beef up this sector through their plans such as “ Janasaviya ” and “ Samurdhi ” .

However, it is apparent that bulk of these little graduated table enterprisers are non successful in incubating their concern thoughts. Harmonizing to the Gamapaha District Chamber, there are many little graduated table enterprisers fail at the early phase and some fails at the in-between phases. There are so many factors that might impact for their prostrations in their concerns. This research strives to follow such issues including the external environment factors. This survey besides outlines the Statement of job Justification/rational researchA inquiry, specific aim, methodological analysis, restrictions, mentions.

1.2 Study Area

This survey covers merely the Gampaha territory and its divisions. Gampaha District is aA districtA inA Western Province, A Sri Lanka. Its country is 1,386.6A kmA? . Gampaha territory was declared as a new administrative territory, separated fromA Colombo DistrictA in 1978.A Gampaha territory is bounded byA KurunegalaA andA Puttalam territories from north, A Kegalle DistrictA from E, A Colombo DistrictA from south and by the Indian Ocean from west ( source-Wikipedia )

Problem Statement

Harmonizing to the “ National scheme for little and average endeavor sector development in Sri Lanka ( 2002, White paper, Task Force for Small & A ; Medium Enterprise Sector Development Program, Institute of policy surveies, ) , they have found out that little concern endeavors are less dynamic and developing as against big scale endeavors in the national economic system. The growing and enlargement of Small Business Enterprises are constrained by jobs associating to both merchandise factor markets, deficiency of institutional support and policy anomalousnesss have farther reduced the possible part of little graduated table concerns ‘ to the national economic system.

Harmonizing to the old surveies there is a high failure rate in SMEs and they are non following much functional schemes in their concern activities. In add-on to the schemes, the behaviour of enterprisers such as accomplishments and attitude besides affect for the growing of the concern.

So it necessary to understand the grassroots degree job faced by little graduated table enterprisers. To determine this, it is emphasized to make a study within the country.

3. Rationale

Although there is a great volume of research on corporate sector, really small empirical researches has been conducted to analyze the little graduated table enterprisers. Some research workers argue that the findings refering corporate constitution and Medium degree Enterprises may non be applicable to little organisations because of cardinal differences between big and little organisations ( Dandridge, 1979 ; Julien, 1995 ; Welsh and White, 1981 ) . This reveals that there is a theoretical and research spread in relation to proper analysis on the constrictions in the developments of the little graduated table enterprisers.

4. Literature reappraisal

Small concern sector is critical section of the economic system non merely from employment and production positions, but besides from fiscal positions ( Peter and Lewis, 1983 ) This emphasizes how SME sector is of import for an economic system. And besides as Damayanth D.G.S. cited the being of a strong and healthy little concern community has ever been recognized as the best manner to continue competition in capitalistic society, prevent monopolistic control of any industries, and therefore guarantee the population of the benefits of competition through better monetary values and quality merchandises ( Steinhoff and John, 1991 ) .

Within the developed and developing states of the universe, it is now by and large accepted by policy-makers at local, regional and national degree, that little to- medium sized endeavors ( SMEs ) are going progressively of import in footings of employment, wealth creative activity and the development of invention ( Nieman, Hough and Nieuwenhuizen, 2003 ; Vesper, Boden, and Roman in Carland, Carland and Ciptono, 1999 as cited by Shafeek Sha, Rhodes University )

Therefore, it is normally understood that the verve of the little and average endeavors for a state. However, it is disbelieving that the coveted development is achieved by the little degree endeavors in Sri Lanka. The SMEs is playing an of import function in the economic system development in Sri Lanka.

However, the information available shows that the growing rate of SMEs is less than 30 % in Sri

Lanka.It indicates that most of the enterprisers are holding inappropriate accomplishments cognition and attitude for the alteration and growing in SMEs. ( R. Senathiraja and W.P. Alwis, )

In add-on to that, there are considerable uncertainties about the quality of direction in this sector, with policy-makers proposing that there are peculiar failings in invention, deficiency of fiscal acumen, selling, entrepreneurial genius, practical cognition, and human resource direction ( Hodgetts and Kuratko, 1995 cited by Shafeek sha ) .

So harmonizing to the bookmans worldwide there is a reverse in the little graduated table endeavors sector.

It is besides noted that, there are big figure of authorities establishments ( more than 15 ) and nongovernmental organisations to assist these concerns supplying assorted services such as selling, Financial, Training, proficient etc. However there is a low part to the national economic system. Annual mean growing rate of the last decennary was 3.6 % . So this emphasizes that there is a demand to analyse these issues identify the factors for such inactiveness.

Therefore, this land degree research is seasonably and compulsory.

ResearchA inquiry

What are the cardinal factors that affect to the development of the little graduated table enterprisers when get downing their concerns and when they are executing concern activities?

Specific Aims

6.1 Primary aim:

To analyze the issues faced by the Small Scale enterprisers when get downing their concerns and constraints/barriers to further development of their concerns. ( In Gampaha District. )

07. Hypothesis

H 1: Small graduated table entreprices ‘s growing hampered by the many conspiring factors ( internal and external )

8. Methodology

8.1 Sample

This survey will be based on the study methodological analysis. For this intent the informations will be collected in the Gampaha District which is the 2nd largest territory in population and 2nd highest Numberss of industries are established in Sri Lanka. It is expected to garner information from 100 little graduated table enterprisers about their concern unit. This survey will use both primary and secondary informations collected from the field degree study.

8.2 Choice of Small Businesss

There are no of definitions to place the little graduated table concerns. The section of nose count and statistics bases it ‘s categorization on no of employments and consequently less than 25 employees grouped under the little and those constitutions using more than 25 are considered as the big graduated table. World Bank in a survey of SMEs in 1997 categorized little as those that had 1-49 and 50-99 as the Medium. Anyhow, in Sri Lanka, when mensurating the size by employment following definition are by and large used. Less than 5 employees ( & lt ; 5 ) micro, 5-29 employees as little 30-149 employees as medium and more than 150 employees considered as the big endeavors. This definition will be used for this research.

8.3 Data Collection

8.3.1 Primary informations

Primary informations will be collected utilizing different methodological analysiss.

Interviews- under this survey it is necessary to interview the little degree enterprisers. The relevant information will be gathered during the personal interviews.

Detecting the industries

Questionnaires- Standard structured questionnaires will be used by the research worker

8.3.2 Secondary Data

Secondary informations will besides be used to for this survey. Published and unpublished informations traveling to be assisted and that information will be gathered from relevant governments such as ;

Department of Commerce

National Enterprise Development Authority

SMED division in FCCISL

Gampaha territory Chamber of commercialism

DS offices

And besides Internet will besides be used as a beginning for the secondary informations.

8.4. Datas Analysis

Descriptive statistics were used to analyse the informations harmonizing to the sample size. Crosstabulations will be done on some of the variables in the survey and this will enable to explicate the significance of the informations better. Comupter soft wares such as Minitab 14.00, and SPSS soft wares to analyse the findings.

9. Contribution of the survey

It is intended that the findings of this research undertaking will be used local and regional governments to measure and measure the current damaging factors that hamper the little scale entrepreneurial growing in the Gamapaha District. These findings could besides be used for disciplinary action for those constrictions.

And, the findings can be used to aware the SME sector and possible enterprisers in Gampaha territory and generalise the determination to the part.

10. Restrictions

Several restrictions can be seen in this peculiar research owing to restraints such as cost and the clip. The major restriction is sample size. The research is limited to 100 respondents.

This information aggregation will be in Gampaha territory therefore the part from the other territories will non be counted for the research.

A The findings are based on the usage of study informations which may be affected by lenience or hyperbolic responses. Integrating a scope of qualitative methods, such as carry oning interviews, research worker ‘s observation, may extenuate the jobs associated with lenience and hyperbolic responses.


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